Indian Finish Long Production Hits 3 Yrs High in May 2018

Indian Finish long steel production jumps upto 12% on monthly & yearly comparison and records close to 3 years (39 month's) high during May 2018.

As per the recent data released by Joint Plant Committee, Finish long (Bar & rods and Structures) steel production in India by both large and medium/small scale producers stood at 4.17 MnT in May 2018. Prior to this, the healthiest production of Finish long steel was recorded during Jan 2015 at 4.93 MnT.

In May 2018, the production has been stretched up by around 11.5% M-o-M and around 9.77 on Y-o-Y as against 3.74 MnT in Apr'18 and 3.8 MnT in May'17.

On monthly comparison in May'18, Finish long production by the large scale makers i:e; SAIL registered around 0.40 MnT (+ 17.65%) followed by RINL 0.34 MnT (-2.86%), Tata Steel 0.24 MnT (-7.69%), JSW 0.36 MnT (+89.47%) and JSPL 0.12 MnT (0%).

Further the production by Medium & small scale producers increased by around 9.27% with 2.71 MnT in May'18 against 2.48 MnT in Apr'18.

Factors to be considered

-- The rise in production can be considered due to better margins along with good domestic demand as the prices have been elongated nearly about 2.5% to 4.5% in specified major regions by medium & small scale producers whereas large scale producers kept their prices unchanged in May'18 on M-o-M basis.

The latest price range of 12-25 mm Rebars by large producers assessed at INR 44,000/MT ex-works, Mumbai and INR 44,500/MT in Delhi, North Region.

--With increasing production by large scale manufacturers along with medium/small scale producers the stock position of finished steel seems to be shrinking in May'18 end with 7.403 MnT against 7.489 MnT beginning of month i:e; down by 1.14% & slight down comes with obvious optimistic market sentiments & well consumption.

Company Wise Production

Quantity in MnT
Source-SteelMint Research